COMMISSIONER OF INCOME TAX Vs. O.P. LOHIA

JUDGEMENT

(1.) DELHI Bench 'H', New Delhi in ITA No. 4488/Del/2005 relevant for the asst. yr. 2002 -03.

(2.) THE AO sought to initiate penalty proceedings under s. 271(1)(c) of the Income -tax Act, 1961 ('Act') by his

(3.) THE appeal against the said order filed by the assessee was dismissed by the Commissioner of Income -tax (Appeals) ['CIT(A)'] on the ground that the assessee had not offered any bona fide explanation for claiming deduction in respect of expenditure incurred, in the form of interest on borrowed funds, for investment in shares the income from which did not form part of the total income. The CIT(A) also negatived the plea that the penalty proceedings were bad for the reason that the AO had not recorded his satisfaction in the assessment order that penalty proceedings should be initiated against the assessee.